Common use of COMMITMENT AND TERM Clause in Contracts

COMMITMENT AND TERM. Subject to the terms of this Agreement, UBEI hereby agrees to sell, and EKAE hereby agrees to purchase, all Raw Grains required for ethanol production at the Plant. The initial term of this Agreement shall be for five (5) years. The parties shall execute a memorandum setting forth the actual date of commencement of the term, which shall be approximately 6 months before substantial completion of the Plant. Unless earlier terminated in accordance with this Agreement, this Agreement shall be automatically renewed for successive one (1) year terms thereafter unless either party gives written notice to the other party of its election not to renew, not later than ninety (90) days prior to the expiration of the then current term.